GML - Where to from Here? - 07th September 2011

Seminar - London 13th September 2011 ||||| On-Line Goto Meeting 27th September 2011

In January I predicted that the stock markets would rise in the initial stages of 2011 then be followed by weakness, perhaps severe, probably throughout the rest of the year.

We had to sit out the year with meaningless vacillations providing losses and frustration to most investors. This difficult period was avoided by large cash holdings. In June I expressed the strain of being able to isolate dozens of future buying opportunities which were subsequently squashed by lack of supporting action at the anticipated time and price. In view of the markets action thereafter this lack of action was testament to the effectiveness of the Gann entry rules. However, this did not ease long held frustrations but did ensure that capital remained intact waiting for the next opportunity which as it happened was not too far away.

26/7/2011

‘A number of interesting set ups have emerged. This could well point, at last, to markets commencing important moves’

The FTSE 100 stood at 5900 when this observation was made and by early August it had collapsed to 4790 during which period we had enjoyed ‘shorting’ profits from 6% to 271%!

As has always been our practice we do not claim profits until trades are liquidated. The practice of assessing wealth on ‘current valuations’ by the den of iniquities in London and elsewhere is dangerous and futile. This is especially so when valuations are provided by beings that are incapable of taking profits or restricting losses no matter what the state of the market. The two main reasons for this ineptitude is the inability of managers to know when to sell and take up cash positions and secondly the size of the funds under management are so huge that the market cannot take selling orders that make any significant effect on valuations. This is why I always advise investors to avoid trusting their savings with Institutions and others with large funds under ‘so called’ management when they are palpably unmanageable.

The depth of risk in following this path can be fully exposed by reference to the late 1999’s when many company pension fund valuations where running in excess of assumed requirement. These valuations were based upon extraordinary erroneous assessments by the investment community of IT stocks and others. Within a few years when the scam had been uncovered half of Britain’s company pension funds had been closed down and final salary schemes, which I had perpetually condemned since the 1970’s, were ditched by all apart from the ‘Ponsi’ schemes run by government. Those leaches of society the regulators and their cohorts the Inland Revenue did nothings as their main preoccupation was to ensure that companies would not overfund pensions to the detriment of the ‘tax take’ which would have a profound effect on their own pensions and of course Politian’s expenses!

My warning from 56 years in my warped financial services industry is to withdraw all funds from management by Institution. Every tax paying family has already been conned out of a minimum of £40,000 by the Banking/Politicians alliance, better not let more drip away.

There is early indication that my Grand Strategy is underway. The first slip has been seen with large volume and a swift three week fall. This is similar to the start of the major market slide in 1930 which also took three weeks to fall followed by an inept rise of 10% in 5 weeks before the next fall. A look at the charts for the UK & US Markets suggests a similar pattern emerging supported by close upside resistance. My world market report exposes no less than 12 markets in a similar position giving support to underlying weakness following the insignificant rally normally associated with Bear markets after a severe fall.

Could our next ‘shorting’ bonanza be nigh?